Pakistan has retired a record Rs. 4.722 trillion (around $17 billion) in public debt before maturity, marking the largest early debt repayment and liability management operation in the country’s history.
The milestone was achieved after the government’s latest Pakistan Investment Bond (PIB) buyback worth Rs. 279 billion (about $1 billion), taking the cumulative early retirement of debt to Rs. 4.722 trillion since October 2024, Advisor to the Finance Minister Khurram Schehzad posted on X today.
Unlike routine debt repayments, the operation forms part of an active liability management strategy aimed at reducing refinancing risks, lowering borrowing costs, and improving the government’s debt profile.
During FY2025-26, Pakistan retired Rs. 2.9 trillion in debt ahead of schedule, a 62 percent increase from Rs. 1.8 trillion in FY2024-25. The retired debt consisted of 51 percent central bank liabilities and 49 percent market debt.
The strategy has also extended the average maturity of public debt from 2.7 years in FY2023-24 to more than 3.8 years in FY2025-26, reducing the need for frequent refinancing.
The government’s debt burden has also eased, with the debt-to-GDP ratio declining from 75 percent in FY2022-23 to an estimated 68.5 percent in FY2025-26.
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